Governor's Possible Budget Move on Cap and Trade Gets Mixed Reactions

Environmental groups are reacting to the possibility that California Governor Jerry Brown’s budget may propose using cap and trade revenue for High Speed Rail. As Amy Quinton reports from Sacramento, the state has generated $530 million from the greenhouse gas emissions reduction program.

Environmentalists are split on whether the money raised from carbon auctions should be used for High Speed Rail. Governor Brown, who will release his proposed budget Friday, has pitched the $68 billion rail project as an environmentally-friendly alternative to cars. Dan Jacobson with Environment California agrees.

Jacobson: “I think it’s a good idea because what we need to move toward is electrifying the transportation system as a whole. And being able to reduce the amount of carbon that goes into moving us from point A to point B is what high speed rail does.”

But the governor upset environmentalists last year by taking a $500 million loan from cap-and-trade revenues to balance the state’s books. Some environmental groups say high speed rail is an inappropriate use of funds. They say that money should be used on projects that will reduce greenhouse gases now.

Environmentalists say money from the sale of carbon pollution permits is supposed to go to programs that help further reduce emissions. California Governor Jerry Brown and lawmakers say it will, just not this year.

California is launching a big part of its fight against climate change on Wednesday. The state is holding its first auction in the "cap and trade" program where industrial businesses will have to buy allowances to emit greenhouse gases. The goal is to reduce the state's emissions to 1990 levels by 2020. From Sacramento, Kathleen Masterson reports on how the complex market is designed to reduce pollution.

The California Air Resources Board has created a map that shows the state’s biggest emitters of greenhouse gases. It is a significant step in the development of California’s Cap and Trade program.

On the new Google Earth map are 625 facilities that each produce more than 25,000 metric tons of greenhouse gases annually. The map breaks down facilities by industry, zip code and emissions. But, Stanley Young with the Air Resources Board says state-to-state comparisons aren’t yet available.

California officials are ramping up for the greenhouse gas emissions cap-and-trade market this November, where companies will be required to pay for their pollution. The state held a trial auction to test the new system for selling carbon credits on Thursday.

The main goal of the test run is to make sure the software works smoothly and prevents attempts to game the bidding system, according to, Stanley Young who is with the California Air Resources Board.